Knowledge Spillover Theory

Knowledge Spillover Theory suggests that knowledge created by one person or organization can unintentionally benefit others nearby, such as competitors, suppliers, or even the community. This is particularly evident in regions with a high concentration of businesses and universities, where ideas and innovations can circulate freely. For example, if a tech company develops a new software, nearby firms may learn from it, leading to overall regional growth and innovation. Essentially, it highlights how collaboration and proximity can enhance creativity and productivity, fostering a richer environment for general knowledge development and economic advancement.